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September 24, 1998 Presented by: Dave Morton, President & CEO, The Quaker Oats Company of Canada L

September 24, 1998 Presented by: Dave Morton, President & CEO, The Quaker Oats Company of Canada Limited Nick Jennery, President & CEO, CCGD. Barcoding and EDI Implementation. Canadian Barcode Initiative. Selling Unit Case Pallet.

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September 24, 1998 Presented by: Dave Morton, President & CEO, The Quaker Oats Company of Canada L

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  1. September 24, 1998 Presented by: Dave Morton, President & CEO, The Quaker Oats Company of Canada Limited Nick Jennery, President & CEO, CCGD. Barcoding and EDI Implementation

  2. Canadian Barcode Initiative • Selling Unit • Case • Pallet

  3. Canadian Selling UnitBarcode Initiative • Progress strong with accuracy 99%+ Validation procedures in place • Driving efficiency in Canadian Industry

  4. Canadian CaseBarcode Initiative Current Situation • Required to drive efficiencies • Warehouse receiving • Warehouse picking accuracy • D.S.D. receiving • Canadian Standard case bar code one side • Some distributors live - others investing • Industry agreed Compliance Date September 98

  5. Canadian CaseBarcode Initiative Current Issues • May survey - 60% cases with bar codes • Efficiency require critical mass • Some suppliers hesitate to invest • Quality/Accuracy an ongoing challenge

  6. Canadian CaseBarcode Initiative Next Steps • Grace period established to January, 1999 • “All Distributors will take the action required to ensure compliance to the January 1999 deadlines” • Cost recovery a real possibility

  7. Canadian Pallet License Plate/ASN Initiative Part of Canadian Supply Chain Vision • Supports efficient distribution/receiving/warehousing • Each pallet “Bar Coded” with license plate • Supported by Advanced Ship Notice Transaction

  8. Canadian IndustryEDI Overview • EDI A Key Enabler To Overall Supply Chain Cost Reduction • Provides accurate and timely information • Reduces manual effort • Eliminates many errors • Supports many ECR initiatives

  9. Canadian IndustryEDI Overview Current Status • Canadian Industry Progress - Unsatisfactory • Limited to P.O. and Invoices • Advanced practitioners few - little benefit • Key Industry Issue - Critical Mass • Broad EDI transaction base • Wide partner usage

  10. Canadian IndustryEDI Overview Barrier to Development • Benefits unique/tough to quantify • Large - long-term investment • Competing corporate priorities - Year 2000 • Multiple versions - Labour intensive • Overall - Lack of future vision

  11. Canadian IndustryEDI Overview Key Initiatives 1) Industry Adoption VIC’s 4010 • Year 2000 capable • General merchandising standard • Canadian Industry Implementation Guide • Broad Industry endorsement May 1999 Conversion Deadline

  12. ECR Canadian Grocery Industry Migration Schedule to EDI VICS-4010 StandardLatest Scheduled Date Is To Be May 1999 Indicate in the appropriate box the planned date for moving to Parmalat Canada Ltd. The Quaker Oats Co. Pepsi-Cola Canada Proctor & Gamble the EDI-4010 standard for each Unilever Cda. Ltd. Kraft Canada Inc. FBI Brands Ltd. Coca-Cola Ltd. trading partner of Cda. Ltd. Culinar Inc. Inc. Ltd Canada Safeway Ltd. Co-op Atlantic Federated Co-operators Ltd. Great A&P Co. Canada Ltd. Loblaw Companies Ltd. Metro-Richelieu Inc. Overwaitea Food Group Provigo Inc. Sobeys Inc. The Oshawa Group Ltd. Thrifty Foods

  13. Canadian IndustryEDI Overview Key Initiatives 2) Industry Adoption - Supply Chain Vision • Covers 4 major Supply Chain processes • Data Alignment • Efficient Replenishment • Physical Distribution/Warehousing • Financial Reconciliation • Specific EDI transactions/timing

  14. Canadian IndustryEDI Overview Summary • Major financial benefits • Execution of implementation plan critical

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